What Is the Certified Fraud Examiner (CFE) Certification?
Earning the certified fraud examiner (CFE) certification qualifies you to prevent and fight fraud and investigate financial crimes, putting you on the right track to success in an in-demand field.
With a rising need for companies requiring anti-fraud professionals to help protect them against fraudulent activities, becoming certified in the field can be a wise career move.
The certified fraud examiner (CFE) certification is a professional qualification that demonstrates your proficiency in identifying fraud and shielding businesses from financial crimes.
Find out details about the CFE exam and how you can earn this professional certification that offers the potential to obtain high-paying job roles in various industries.
What Is a Certified Fraud Examiner (CFE)?
A certified fraud examiner has the necessary years of professional experience and anti-fraud training to detect fraudulent activities and avert financial crimes of businesses and individuals.
They have earned the CFE credential, which signifies their expertise in areas like fraud prevention and their understanding of complex financial transactions and fraud investigations.
A CFE demonstrates they have met education and work experience requirements as anti-fraud professionals. They also display competence in abiding by a specific code of professional ethics, making them a valuable asset to any organization.
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What Do Certified Fraud Examiners Do?
According to the Association of Certified Fraud Examiners (ACFE), a typical company experiences a 5% loss of its yearly earnings due to fraudulent acts, resulting in an average loss of $117,000 before detection; a certified fraud examiner is trained as a financial crimes professional to find and prevent this fraud from happening.
As a CFE, some of your responsibilities include:
- reducing the risk of fraudulent activities by developing and implementing fraud prevention strategies
- collaborating as an expert witness against fraudsters and testifying in litigation that involves white-collar crimes and other types of fraud cases
- auditing financial records of organizations to uncover occupational fraud and identify fraud schemes
- acquiring knowledge of forensic accounting to engage in fraud investigations of individuals and businesses
What To Know About the CFE Exam
The CFE exam is administered by the ACFE, which is the world's largest anti-fraud organization. As a prospective CFE candidate, here is what you need to know about the examination.
CFE Educational Requirements
The education requirements for CFE certification include having a bachelor's degree or higher, but it is not required. To be eligible for the exam, you must meet certain qualifying points, and the ACFE grants 40 points for having a bachelor's degree. You can also earn points based on your professional experience and years of college study.
What Is on the CFE Exam?
The CFE exam assesses your understanding of the primary fields of fraud examination. It aligns with the Fraud Examiners Manual, which serves as the main reference for all topics covered in the test.
The content of the CFE exam includes the following:
- demonstrating knowledge of financial transactions and fraudulent schemes in accounting records
- displaying an understanding of common law principles and leading fraud examinations to prosecute fraudsters
- proving knowledge of tools and techniques required to conduct fraud investigations and identify perpetrators
- showing comprehension of why fraud is committed and strategies for fraud prevention and deterrence
CFE Scoring Structure
The CFE exam scoring structure is pass/fail. It includes 100 multiple-choice and true/false questions in each of the four sections that test your skills and knowledge in the main areas of fraud examination. To pass, you must correctly answer at least 75% of the questions within each section and are allowed three attempts.
How Much Does the CFE Exam Cost?
You have to pay a $450 test fee to take the CFE exam. You must also become an ACFE associate member, which requires initial and annual membership fees. More information on this can be found on the ACFE website. Other expenses include the cost of exam preparation courses, which can earn you a $100 credit toward the exam fee.
How To Become a Certified Fraud Examiner
You need to take a few steps to be eligible to take the CFE exam and become a certified fraud examiner, as outlined below.
1. Assess Your Qualifications
You first need to be an ACFE member. You also must have the right education, such as a bachelor's degree, and at least two years of fraud-related work experience in areas like detection or deterrence. This counts toward the minimum 40 qualifying points required to take the exam, then the 50 needed to become certified.
2. Prepare and Apply
The ACFE offers many resources, including prep courses and review classes, to support your studies and help you prepare for the CFE exam. When you meet the eligibility requirements and have the required qualifying points, you can submit your application through the ACFE website and pay the appropriate fees.
3. Take and Pass the CFE Exam
When your application is approved, you can take the CFE exam, which is computer-based and live-proctored by Prometric. You need a valid government-issued ID and can sit for it remotely or in person at a Prometric Testing Center. Passing the exam requires achieving at least 75% correct answers in each of the four sections.
Preparing for the CFE Exam
There are many ways to help you prepare for the CFE exam that help you master the test. Examples of how you can get ready to take the CFE exam include:
- enrolling in a CFE exam prep course, which is a self-directed study that includes pre-assessments and interactive review questions for those who learn best at their own pace
- taking a CFE exam review course, which is instructor-led and helps you gain insights into the concepts of the exam and interact with other CFE candidates as you prepare
- studying the Fraud Examiners Manual, which is the essential body of knowledge for all content included in the CFE exam
How To Maintain Your CFE Credentials
Maintaining your CFE credentials includes keeping your skills and knowledge current by completing continuing professional education (CPE). As a CFE, you must obtain at least 20 CPE credits each year to uphold your certification, including 10 credits in fraud detection and deterrence and two in ethics.
You also need to be an ACFE member in good standing who pays their annual ACFE membership dues and agrees to follow their code of professional ethics and standards.
Is CFE Certification Worth It?
Yes, earning the CFE certification is worth it for the right individual interested in combatting fraudulent activities that affect individuals and businesses. It is a valuable career path, and there is a high demand for professionals with expertise in fraud risk management and investigative techniques for fraud detection and deterrence.
Getting the CFE credential provides the skills you need to fight fraud and protect organizations against substantial financial losses, making it worthwhile.
